ACTIVITY BASED COSTING Definition

Bookmark and Share

ACTIVITY BASED COSTING (ABC) is a costing system that identifies the various activities performed in a firm and uses multiple cost drivers (non-volume as well as the volume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recognizes the causal relationship of cost drivers with activities.

Learn new Accounting Terms

PROFESSIONAL SERVICES are those services offered by university trained professionals, e.g. doctors, lawyers, and accountants for, normally, a professional fee.

RENEWAL NOTE is a note that renews a previous note due date.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.